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Capital Budgeting Decision Project Details: Initial Investment: $600,000 Yearly Cash Flows: $150,000 for 6 years Discount Rate: 8% Requirements: Calculate the Internal Rate of

Capital Budgeting Decision Project Details:

  • Initial Investment: $600,000
  • Yearly Cash Flows: $150,000 for 6 years
  • Discount Rate: 8%

Requirements:

  • Calculate the Internal Rate of Return (IRR).
  • Determine the Payback Period.
  • Evaluate the project based on NPV and IRR.
  • Discuss the advantages and limitations of using IRR in capital budgeting decisions.

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